Date of Award

Spring 5-2019

Document Type

Honors Thesis

Degree Name

Bachelor of Science

Department

Finance

Advisor/Committee Chair

Ying Wang, Ph.D.

Abstract

This paper provides empirical evidence on the relation between portfolio turnover and fund performance in the exchange traded fund market using a sample of 70 actively managed fixed income funds from 2008-2017. Based on portfolio analysis, the results show that there is a significant positive relationship between turnover and Fama and French’s (1993) five factor alpha. Further panel regression analysis, however, shows no significant relationship between turnover and performance after controlling for various fund characteristics. Overall, the results show no robust effect of turnover on the performance of fixed income ETFs.

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